Government subsidies to GOCCs double to P32.31 B in June

MANILA, Philippines -  Government subsidies to state-owned corporations amounted to P32.31 billion in in June, double the P16.05 billion recorded in June last year, data from the Bureau of the Treasury (BTr) showed.

From January to June, budgetary support to state corporations amounted to P58.22 billion, 59 percent higher than the P36.6 billion in the same period in 2016.

According to the Department of Budget and Management, the substantial increase in the transfers to GOCCs in June is one of the factors that led to higher government expenditures during the month.

Total disbursements during the period grew 22.6 percent to P270.7 billion from P220.8 billion in the same period last year.

The DBM said the bulk or P12 billion of the total subsidies in June went to the National Housing Authority for the completion of its housing programs for informal settlers and calamity victims.

Another P9.3 billion was sent to the Philippine Health Insurance Corp. to cover the health insurance premiums of senior citizens under the National Health Insurance Program, while P5.7 billion was given to the National Irrigation Administration for its completed irrigation projects.

The DBM said about P3.6 billion in subsidy was also released to the Manila International Airport Authority for the payment of the value-added tax (VAT) on the P20.5 billion compensation made by the MIAA to the Philippine International Air Terminals Co. Inc. (Piatco) for the expropriation of the Ninoy Aquino International Airport (NAIA) Terminal 3.

“The P20.5 billion payment made in September last year only represents the full settlement amount and interest charges as ruled by the Supreme Court, but excludes the VAT charges which shall be withheld by the MIAA and remitted to the BIR,” the DBM said.

Other agencies who acquired budgetary support in June include the Bases Conversion Development Authority (BCDA) with P559 million; Sugar Regulatory Administration, P261 million; Philippine Children’s Medical Center, P206 million; National Livelihood Development Corp., P202 million;  Subic Bay Metropolitan Authority, P136 million; and the Cultural Center of the P;hilippines, P121 million, among others.

The national government provides subsidies to state firms to cover their funds for programs and projects, as well as operational expenses.       

In 2016, subsidies issued to GOCCs went up 32.28 percent to P103.19 billion, the highest amount on record since 1995.

For this year, the national government is programmed to release P128.87 billion in total subsidies to GOCCs, according to the Budget of Expenditures and Sources of Financing (BESF) document of the Department of Budget and Management.